Silver Speculators Add Bullish Bets as Market Awaits Fed Decision
The price of silver has been volatile in recent weeks, with Friday's gain masking a 2.7% week-over-week decline and a 7.9% drop since the start of the year.
CFTC data shows net-long positions in COMEX silver increasing by 2,006 contracts to 14,176, indicating institutional players are taking a bullish stance despite market uncertainty.
The futures flow contrasts with the spot picture, as silver remains below its 200-day average of $73.75 and is still reeling from the summer peak.
Analysts point to five supports for gold and silver, including options signals in the GLD and SLV funds, squeeze potential from net-short positioning among commodity trading advisors, accelerating central bank gold purchases since late 2024, and retail inflows. However, a looser Fed is now under strain due to hotter-than-expected August core inflation.
The market is awaiting the Federal Reserve's decision on September 15-16, which could provide a clear directional cue for traders.